27 Nov Beware Of Mortgage Modification Scams

How many times have you heard, “If it sounds too good to be true, it probably is”? With the push to save homes through mortgage modification, more companies are promising results that they cannot deliver.

Twice in this last week, I have had potential clients come to me looking for help with mortgage modifications. Each of them had been referred by companies that claim to assist homeowners in foreclosure to obtain a modification. Both lost their homes to foreclosure and it was too late to save anything.

The first homeowner paid $4,000.00 to retain a law firm in California to assist with working things out with their mortgage holder. The homeowner and the property was in Connecticut. The California firm was neither admitted to practice here in Connecticut, nor licensed to perform debt adjustments here. They did not understand Conecticut foreclosure proceedings (which is similar only to Vermont). The firm finally decided to refer the homeowner to local legal help more than three weeks after the foreclosure judgment was final. The homeowners lost a $500,000.00 home.

The second case went to judgment in April. While the firm involved was located in Connecticut, they were mortgage brokers attempting to obtain a re-finance of a home long lost to foreclosure. It was the family home for over 20 years. One of the employees of that company attempted to appear in front of a Judge in Court representing the homeowner. In most states, that is called practicing law without a license.

In both cases, the homes are lost. The homeowners are now home-losers. Their only course of action is to pursue legal action against their ‘saviors’. Even if they are successful, nothing can make up for the loss of their homes. So beware, make sure you have consulted with at least one, if not two, competent attorneys who are skilled in the areas of foreclosure and mortgage modifications.